Instructions For Form Ftb 3801 - Passive Activity Loss Limitations

540NR) as positive amounts.

as if you had been a California resident in

days you were a California resident during

all prior years.

the pass-through entity’s fiscal year ending

S Corporations

in 2013.

Completing the Form the Second Time –

1. Add the column (c) amounts and enter the

Enter the result in column (f) of the California

Full-Year Nonresidents

results on the Total line for column (c).

Passive Activity Worksheet on form FTB 3801,

• Complete the form and worksheets a

2. Add the column (d) amounts and enter the

Side 2.

second time by following the General

results on the Total line for column (d).

When completing column (c), of Worksheets

Instructions beginning on page 2. Complete

3. Subtract the Total amount of column (d)

1 and 2 on form FTB 3801, Side 3, for non-

only Step 1 through Step 3.

from the Total amount of column (c) and

California source activities, use the same

• Include only your passive income and

enter the difference on the Total line for

formula noted on this page in column 2.

losses from California sources.

column (e).

• Partners, members of a limited liability

Useful Publications:

4. Net the column (e) Total amounts [the sum

company (LLC), or shareholders of an

• FTB Pub. 1031, Guidelines for Determining

of line 1(e), line 2(e), and line 3(e)].

S corporation – The note in Step 1 instructs

Resident Status – 2013. This publication

you to use the amount from Schedule K-1

• If the result is positive, enter the result

provides information on determining

(565, 568, or 100S), column (d). Instead of

on Form 100S, line 7.

residency and whether your income or loss

the amount in column (d), use the amount

• If the result is negative, enter the result

has a California source.

from Schedule K-1 (565, 568, or 100S),

on Form 100S, line 13 as a positive

• FTB Pub. 1100, Taxation of Nonresidents

column (e).

amount.

and Individuals Who Change Residency.

• Worksheets 1 and 2, column (c) – The

Nonresident and Part-Year Resident

This publication discusses the rules for

amount of prior year unallowed losses is

Instructions

calculating loss carryovers and includes

the amount of prior year unallowed losses

Nonresidents and part-year residents must

passive activity loss examples.

from California sources only as if you had

complete form FTB 3801 and the worksheets

been a nonresident in all prior years.

twice:

Completing the Form the Second Time –

• First, to determine the amounts to enter on

Part-Year Residents

Schedule CA (540NR), columns B and C.

• Complete the form and worksheets a

• Second, to determine the amounts to enter

second time by following the General

on Schedule CA (540NR), column E.

Instructions beginning on page 2. Complete

Completing the Form the First Time –

only Step 1 through Step 3.

Full-Year Nonresidents and Part-Year

• Include your passive income and losses

Residents

from all sources for the part of the year you

• Follow the General Instructions beginning

were a resident, plus your California source

on page 2.

passive income and losses for the part of

• Complete the form and worksheets as if

the year you were a nonresident.

you were a California resident for the entire

• For an interest in a non-California source

year even though you were a nonresident

passive activity, you must prorate the

for all or part of the year. A resident is

income or loss from such activity to be

taxable on all income from all sources,

reported during the period you were a

including income from sources outside

resident, unless you have information that

of California. When completing the forms

specifies when the income or loss was

and worksheets the first time, include your

realized. Figure the prorated income or loss

passive activity income and losses from all

as follows:

sources for the entire year.

Number of days

Amount of

• Worksheets 1 and 2, column (c) – The

you were a

income or

amount of prior year unallowed losses is

California Resident*

loss from

the amount of unallowed losses generated

365 days

your

Passive

Activity

* If your passive activity is from a fiscal year

pass-through entity, enter the number of

Page 4 FTB 3801 Instructions 2013

Instructions For Form Ftb 3801 - Passive Activity Loss Limitations - 2013 Page 4

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